Roundhill Innovation-100 0DTE Covered Call Strategy ETF

It is an exchange-traded fund that sells call options on stocks within the Innovation-100 index to generate income. The strategy seeks higher yields but gives up some upside when the underlying stocks rise sharply.

0DTE means zero days to expiration. The options are intended to expire on the same trading day, which can create frequent income opportunities and significant short-term risk.

The fund generates option premium by selling calls on Innovation-100 stocks. Those premiums can support distributions, but the strategy does not remove the risk of losses in the underlying holdings.

Selling calls can produce income, but it limits part of the portfolio's upside when stock prices climb above the option strike prices. The fund can still lose value when its underlying stocks fall.